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Squawk on the Street

News/Business. Mark Haines, Erin Burnett. Opening bell market action.

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U.s. 20, Us 14, S&p 10, Greece 10, Simon 10, Washington 8, China 8, Citi 8, United States 8, Europe 7, Jim Bob 5, Cisco 5, Apple 5, Charles Schwab 4, Schwab 4, Bob Pisani 4, America 4, Matt Nesto 4, Uk 4, Andy 4,
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  CNBC    Squawk on the Street    News/Business. Mark Haines, Erin  
   Burnett. Opening bell market action.  

    March 5, 2010
    9:00 - 11:00am EST  

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weather which was supposed to depress things. as we count you down to the bell this is where we look, 29 minutes away and i'm surprised it's actually not more positive than that at this stage but we'll see what happens. >> we're bumping up against resistance according to the technical analysts. let's hit the markets, bob pisani. what's going on where you stand? >> well, we've popped five points as the nonfarm payroll numbers came out a little better than expect eld but you see the bureau labor statistics, on the first paragraph, it's not possible to precisely quantify the impact of the winter storms on these measures. they don't know themselves. bear that in mind. despite the s&p 500, folks, 20 points from a new high. we had a new high in the mid cap index. we've got a new high in the ftse over in europe. europe has been strong throughout the morning. they've outperformed us all throughout the week as greece has been looking a little better so this morning commodity stocks are stronger. bank stocks also are stronger. european bank stocks particularly are on the up side here. capital one was downgraded over at goldman sachs this morning, down about 2%. no, not on issues related to
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credit but issues related to loans. new loans have fallen 4%. remember they have these potential new laws on late fee rules that could potentially impact them as well. finally overseas ship building down 4%. now a secondary offering of 3.5 million shares. scott, we are maybe 1% from the new high on the nasdaq. we could hit one today. >> absolutely, bob. we're at the highest levels since mid january when we did have the highs. nasdaq is certainly going to open higher today and those big cap technology stocks are all looking pretty good in premarket trading today. google is higher by 1% reiter e reiterated buy at citi. across the spectrum of widely held and large cap tech it's the story you're seeing. microsoft 3/4 of a percent as is intel about the same amount. amazon 0.5%. cisco 0.75% as well. that gives you a picture of where the nasdaq is slated to open. tivo up 8% this morning upgraded
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at jp morgan. a company called progress software. i'll update you when there is more volume in the stock. it's going to be a mover because it was upgraded. intermune up 84%. there were positive fda comments on the drug trials there. >> traders on the floor are asking, what are these jobs numbers really meaning? the fact we still have 9.7% unemployment but the payroll data was better than expected means to real people a lot of people are still out of work. for the market it means oil prices may be headed to $85 a barrel. we are at the highs of the session. opening over a dollar right now and on our way toward those highs as i mentioned. keep in mind we're poised for the third weekly gain in a month for oil prices. again, on some positive indication. according to the market for the economy. keep in mind as well we look at gold prices, gold prices usually fell after the payroll data but they have recovered. we're continuing to watch the euro and particularly the
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meeting today between the greek prime minister and the german chancellor. in terms of copper prices look for copper prices some analysts say to go to the downside as the effects of the chile earthquake haven't been eliminated. >> down 36,000, unemployment rate the same. look at the yield curve today. initially rates went up on that data because in some ways to some it was much better than expected considering all the head winds of weather. we saw two-year notes, three-year notes, five-year notes sell off rather quickly but we did see a lot of the curve catch up other than 30-year bond. what is most enlightening is look at the yield curve on the week. it flattened about five basis points. why do we care? when you're financing a lot of debt do you really want to see rates rise and make that cost more expensive? 74 billion in supply next week and more on this complicated data and trying to divine what it means. let's go to steve liesman back at hq.
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>> better than expected february jobs report serving only to really energize the debate between the bulls and bears and the direction of the u.s. economy which is to say something for everyone to argue about in this report. on the one hand it was another monthly decline in jobs, this time though only 36,000, despite the addition of 15,000 census workers. on the other hand the unemployment rate remains unchanged and the separate household report shows the addition of 300,000 workers. average hourly earnings ticking up just an anemic 0.1%. it was a much shallower decline than earlier this year. the report did not show much effect from the fabled snowstorms that had some economists predicting declines of 200 to 250,000 for the month. the weather effect though might have shown up in the weekly hours which declined by 0.1% to 33.8%. here are the gainers. manufacturing up 1,000. it is the first time since 2006
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that we had two monthly consecutive increases in manufacturing, private services up 42,000. temporary help has been a consistent gainer and a sign to some economists of more solid job growth to come. professional and business services up 51,000. losers, goods producing construction, that might have been a weather related issue there. 64,000 financial activities down and government down again despite all the stimulus. take a look at the civilian work force which has been an issue over the past several months now. that's the annual. you can see we are losing workers. people are dropping out of the work force although it did gain in the most reegs ent month and then again as we give you each month what we call the real unemployment rate, which is the ag grey gatien of part-time workers for economic reasons, discouraged workers, people who dropped out. that ticked up to 16.8 after having declined to 16.5. the separate household survey counted 6.3 million americans who worked part-time or not at
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all because of the weather. that makes it a major event. they are still, however, counted as employed. simon, one person joked riley in our office that maybe it was good for employment. the boss couldn't show up to fire people. simon? >> oh, morbid. >> let's look at asia. they will clearly be cheered first thing monday by the jobs report we've got out. now positive actually for the session in advance of that and in europe again you'll notice that france has done particularly well and still of course good news coming from athens where the greeks managed against the odds perhaps given there are no guarantees from anyone of a solid nach tour come through with a $7 billion debt sale yesterday. guy johnson has the latest from the streets. >> reporter: simon, thank you very much. it turned out to be a fairly interesting day post that auction here in athens. we just had to move our truck because of demonstrations taking place. rocks are being thrown at us,
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rocks being thrown at the riot police, lots of tear gas. pretty much everywhere. but it was interesting. i sat down this morning with a very senior banker previously at jp morgan, now head of the debt office. he says ironically these protests play to the government because what they prove to the international investor is that the pain is being felt. the kind of pain that hasn't traditionally been felt is now being felt by the greek people. he did say though that it was extremely expensive. they paid 640 basis points in terms of the yield to get it away. it was actually critical they did get it away though because there was some serious concern that if they had gone to berlin, got a couple smiles and hand shakes from merkel and nothing else, then he could have seen disaster come monday morning for the greek bond auction. so they had to go to the market. they only went for five. remember they've still got 19 billion to roll by may so a lot of work to do but he made it
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absolutely crystal clear to me we are not in a situation where we can pay 640 basis points. we have to get this sorted and get it down. the rest of the euro zone has to deliver if they want to get these rates lowered. i guess the only way to do that is with euro zone support. mark, over to you. >> thank you very much, guy johnson. i'm down here on the floor with dr. oh, no. dr. gordon charlop, rosenblatt securities, official cnbc commentator. he's just got the world on a string and he joins us now to tell us what's going on. >> jobs number looked well enough. >> no relation to the skater oh, no. >> no. just oh, no. so what do you think here? is this jobs number going to give us a kick out the top side of the range? >> well, i don't know. we're certainly -- >> if you don't know why are we talking to you? >> probably want to talk to me about the other calls i've made that have been good. mark, i won't sit here and say we're going to bust out off these numbers. there are some statistical
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inconsistency with these things. they're not always 100% on. they're even forecasting if it was worse than it was, it was because of the weather. >> sure. >> they had already built these kinds of things in. you know, it's a decent number. it's been consistent with a lot of the data we've seen out here. i don't think we bust out to the up side here. and, you know, you talk about some of these other things, mark, like the greek debt sale. it's still not done over there. i mean, there are still problems. you got 21% v.a.t. so, i mean -- >> you're sounding a little more cautious than you've been lately. >> look, they've been holding them here. they haven't been able to break them down. and i said that they'll -- i just don't want them to get too far ahead of themselves too fast. there are still a lot of problems with debt globally, nationally, states. i mean, there are still some concerns out there. we're trending up here. if we do bust out to the high side i think we'll be vulnerable. >> okay. thank you, gordon. have a great weekend. gordon charlop, rosenblatt
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securities. what have we got coming up here, simon? i lost my list. >> let's check where we are with the futures there. still looking very positive, mark. we should note of course that the -- as a result of the weather the expectations were guided down. originally some people were talking about not actually getting any losses on the jobs but they thought that they might as a result of the bad weather. we're learning a lot more about apple's new ipod including when it's going to go on sale. that's next. and the street poll. lawmakers move forward with a $15 billion jobs bill. that includes tax breaks for companies hiring new employees and more federal highway funding. is the money well spent? or is it waste of our tax dollars? go vote. squawk on the street.cnbc.com.
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check out apple shares. we're heading this morning as you can see higher. the i-pad, that video playing device will go on sale in the united states april 3. wow. i bet david faber already has one. let's go to the faber report. >> you know then we'll take the lines, all those people waiting in their sleeping bags, eating for three days on the street, lining up around the apple store. okay. sorry. let's talk m & a. all right. back to fertilizer. just give me 30 seconds here. cf launches its hostile exchange
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offer or its exchange offer for terror. remember the deal worth about $47.40. in fact, what's interesting is it's still worth about $47.40. in fact, it is. why? well, you can take a look at terra of course trading a bit below that as you might expect. this'll take 30 days if terra agrees but why is it worth what it was worth? when we didn't expect it might not be worth that when they started the ex-clachange? because cf's stock price is $108 a share. that's why. why is that $108 a share? well, in part because of continued rumors out there that agrium which of course has an offer out there to buy cf for about $110 a share in both cash and stock continued rumors that it will try and jump in here with a higher bid, with a bid in some way reflecting the ebitda multiple that cf is proposing to pay for terra. every chuckeck i get thus far i that agrium is sitting back and
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going, all right. these guys want to do that? we'll have to wait and we'll probably lose because there is nothing we can do. nonetheless, that rumor has continued to push cf shares higher in a week when many expected that might not be the case. perhaps more to come there but from what i'm hearing agrium says, what are we going to do? bid even more? they'll still say no. what's the point? they've got the power. we don't. because shareholders have no power in terms of having a say in cf and their continued bid for terra and continued refusal on the agrium side. more m & a. $1.2 billion including debt. why am i doing it? i know it's not too big. it's rcn. anybody remember this? maybe i'm just getting really old. haines probably remembers these days. rcn, a company that broadband, hooking you up to your cable, your broadband, your telephone, the triple play, tearing up the streets of new york city and boston, raised billions and billions of dollars in the late '90s, early, and then went
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bankrupt. but it came out of bankruptcy. now bought at $15 a share by a private equity firm abry is the name of the private equity firm, a boston-based firm. as i said, 15 bucks a share worth about $1.2 billion including debt. rcn by the way does have a right to solicit. there's no financing condition and they can go out there and talk to third parties through april 14th and see if they can get a better deal. all right. from a little deal to a rather large deal, one we've been waiting for for sometime but one that does appear, it will be announced on monday. i'm talking about aig's latest sale, that of american life insurance to metlife a deal that's been in the works for months now. they've been waiting for a tax ruling. it came through. it was what they had expected. it is going to allow the deal to occur. and i'm being told we can expect to see something probably monday morning in terms of a press release. what will it look like? $6.8 billion in cash from metlife to aig and $8.2 billion
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in common and preferred stock. by the way, no voting rights along with that common and preferred that goes to aig and of course then aig is going to turn around and send some of the proceeds to the federal reserve bank of new york the same way it did or will do when it closes its sale of aia. by the way, aia and american life, they do business overseas. remember, aig one of the more unique companies in american history in that it really was founded in china dan business, most of its business overseas and then when it went along developed more of a domestic business. these two are part of the crown jewels of this company leaving some to ask, okay. you've had this. you've sold them. you got good prices potentially. you waited. that was smart. but it may be a while until we see, that is the u.s. taxpayer, sees much else coming their way. 16 billion preferred interest in aia. $9 billion preferred interest in alico and as i said they will be
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getting repaid when both of these deals close. on that the prudential purchase for $35 billion of aia, take a look at prudential as we end here. it hasn't had a particularly good week. but it came back a bit. came back just a bit. but the value of that deal of course has come down. of course, that is a game changer for that uk-based insurer. back to you. >> thank you. the greek austerity measures have passed through the parliament, mark, in athens. that will surprise many on wall street. there was speculation that the population wouldn't go with it or the political population, but they have despite the protests that we've seen on the streets. >> i'm so relieved. what are we looking at here? athens composite up 1.3%. so does this mean the end to the rioting or the beginning of the rioting because they're all ticked off about the austerity? my guess is it's more rioting.
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>> do you think? >> well, if it's an austerity bill my guess is it's not going to sit well with the -- >> yeah, but the important thing is what it means for wall street doesn't it? that is good news. >> well, if you're on wall street that's what's important. >> well, we are a wall street show -- >> this is not athens today, is it? >> hey, have a little sympathy for the average greek. >> don't turn it around on me like that. goodness sake. >> a little heart for the poor greek worker who now probably can't retire at the age of 51. >> or not have as big a bonus at holiday time. >> well, anyway, here is a check on the futures right now. they jumped on the jobless data and are remaining strong. we're looking at about a 40, 50-point jump on the dow. buzz beyond the big board coming up and today's trading jobs report next.
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they've done a great job so too big to fail we think will become almost historic terms. never again will we go back to what we were in september of '08 where you have a major taxpayer bailouts and major institutions. secondly, we'll have a lot of transparency and accountability in the exotic instruments, derivative swaps and the like. we'll see as well some early warning systems for systemic risks so we don't get blindsided as we have in the past. and, fourth, we'll have a very strong consumer protection effort here. >> the view from washington on "squawk box" this morning. let's get the buzz beyond the big board on wall street in midtown manhattan. art hogan global equity product director at jeffries. good morning. how closely are you paying attention to what senator dodd says? >> well, obviously it's very important to us and it's interesting as the progress
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moves here we want to see, you know, how arduous this bill may be in terms of regulatory oversight. this is obviously the thing we've been waiting for. right? every crisis we've ever had we have to change regulation for and then regulation usually swings too far. the pendulum swings too far in one direction and then we work our way into something that's workable but right now we're still in a talking mode and i think a lot of good things are being brought up. you know, there's an increasing thought process going on now that this is actually something that may work. we may have a workable change in regulatory oversight for financial services. >> art, we've been stuck in a range for a while. i was kind of hoping that the jobs number would be enough to boot us up through the top but it doesn't look that way now. what's your outlook here? do we say stop? >> mark, you bring up a remarkable point. when you think about the fact that we're exactly where we were, where we ended the year, it's march 5th so we worked through 65 days of the year and literally haven't moved an inch and virtually, you know, the
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argument on either side of this is pretty well balanced. we've got the people who think we went too far too fast, concerned about sovereign debt issues. the other hand, you look at people that know we're going to earn about 80 bucks and stocks look cheap. i think we're heading higher. probably going to take a month before we do it. >> okay. art hogan, thank you very much. >> thanks, mark. >> wall street gets ready for business. get traders' reactions to the jobs report when the bell rings. >> stay with us on "squawk on the street." whwhwhwhwhwhwhwhwhwh
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announcer: trade commission free for 30 days, plus get 100 dollars cash, when you open an account. headlines before the bell, the jobs report shows a drop of 36,000 jobs in february. but the unemployment rate stayed steady at 9.7% and everyone figures, you know, with those blizzards we have in the northeast, that's not a bad number at all. greek parliament passes critical austerity measures. the economy protection bill
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covers much of the $6.5 billion worth of budgetary measures proposed by the government earlier this week as it grapples with a $300 billion euro debt. futures up, again, on the jobs indicating a higher open. >> and as we count you down to trade, the ceo of index futures group.com as well as a cnbc market analyst joins us now. good morning you to. do you think this jobs figure has a chance of giving us direction, broader direction on the market? >> well, it took us right into the teeth of some serious resistance. mark was alluding to that a while ago. this is an area that is going to be critical. we have to get through it. on the other hand the market was looking for complete disappointment. the whisper numbers were for about a hundred thousand job losses so the fact we didn't get that is going to be a bit of a positive. one thing to keep in mind later today an hour before the market closes consumer credit comes out and they're looking for a contraction of 4 billion. let's see, that could be a bit of a damper on any kind of rally taking place. >> okay, jack.
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thank you very much for that. we count you down to the opening this friday morning. >> in fact, here we go. in ten seconds the bells will ring here at the big board. charles schwab, ticker sch. i think it's schw. yeah. celebrating its transfer to the big board from the nasdaq. we will speak with liz saunders, chief investment strategist of charles schwab in a few minutes. and at the nasdaq energy 21, ticker exxi. and oil and natural gas exploration company. >> our market reporters are standing by. nyse, nymex, nasdaq, and cme but we kick off with bob pisani. >> we had a nice move up, five points on the better than expected nonfarm payrolls report. here's what's really important about this morning. the dollar is up, commodities are up. and stocks are up. all at once. remember i said two months ago
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some day in the bright, shining future the dollar and the stock market are going to go up at the same time? well, it's been happening. this isn't the first day this has happened but it's quite noticeable today and overall it's a pretty good sign. stocks, dollars, commodity all on the up side. we've seen banks up on the european situation, the greek situation getting better. the european banks have been strong all throughout the morning. ftse in london is at a 52-week high. yes, they have a lot of problems but the stock market is still holding up. commodity stocks have been strong across the board here. the coal and steel stocks, iron ore stocks opening 2%, 3%, 4%. the s&p 500 now only 20 points away from a new 52-week high. trader talk.cnbc.com and, scott, getting close to a new high on the nasdaq as well. >> absolutely, bob. thanks. to the up side right off the open about 0.5%. big caps certainly on the move in that direction as well. apple shares higher as the company says april 3rd is the date where you can get the i-pad. 2% to the plus side for apple right off the open. google reiterated a buy over at citi. they say now is a good time to buy on some of the weakness.
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the target there 640 bucks. stocks up better than 1%. intel is higher by 2/3 of 1%. amazon was higher but is down now. microsoft turning flat. intel higher as well. take a look at marvell technology down off its earnings today. stock down by, well, premarket down about 8% or so. tivo was up sharply. let's go to sharon at the nymex. >> prices continue to extend gains above $81 a barrel after the employment report but there are a couple factors already lifting crude prices before that data came out. we are hearing from traders that they're paying attention to what china's premier had to say signaling that we may maintain stimulus measures for sometime. they're watching that very carefully. they're also watching what is happening in terms of some geo political concerns. a nigerian militant group blowing up an oil facility in nigeria overnight. the second attack this week. add to that opec oil exports were down for the past four
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weeks according to oil tankers. and refined fuels. keep a look at what is happening there in light of the tightening of supplies out of chile with the two refineries still remaining down. rick santelli, to you in chicago. >> thank you very much, sharon. of course we all know that one of the big movers today was the employment report and we can spend all day arguing how good is good when it comes to really getting the job creation but in the interest rate market, we need to pay close attention that not only are rates higher on the day and on the week but the yield curve today has stabilized so we don't see that the leadership of the short rates higher based on if things really are getting better does that mean the fed can't keep easy money forever? that dynamic is kind of washed out. it's still present on the week and it underscores higher rates going into next week, $74 billion in supply. may be an issue. the dollar is higher but it's giving up some of its best
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ground. mark haines, back to you. >> thank you, rick santelli. let's get to the white house's first reaction to the jobs report. first on "squawk on the street." let's bring in hilda solis, u.s. secretary of labor. what do you think of the number? better than expected because of the weather or what? >> i think we see again moderation and stabilizing of the economy and i'd like to point out this chart that i have here. if you recall, last year at this time we were suffering tremendous job loss, well over 700,000. this time around in january i'm happy to report that the job loss was, has shrunk as you can see and it's in part because of the recovery act. we're down now to 36,000 jobs that we lost as opposed to well over 700,000. in addition i want to also point out for your viewers -- >> you came prepared. >> that gdp in the last quarter went up 5.9%. as you know that is a good indicator for economic growth. but, yes, we do have to do more in terms of providing relief to
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americans. the public still is hurting. we still have too many people that don't have jobs and so the president today is also going to be visiting a place out in virginia to help incentivize people to retrofit, weatherize, and help to conserve energy by getting tax breaks to modernize their homes. >> surely you will, well, maybe you wouldn't concede that some of that turn-around in jobs is the natural result of a cycle in the economy. >> i think that natural cycles are one thing but also the infusion of recovery act dollars is also providing that incentive. and i think that some of the things that we've started to see already, the movement with respect to tax credits for small businesses, is the right direction. but that's only a downpayment. we still have to go much further. and i think that people should understand that the president really does want to see more support so that we can put jobs back, increase the number of
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people that are unemployed, and get our manufacturing base going. part of it is through renewable energy, infrastructure dollars, i mean roads, highways, rail systems, all of that means good, steady jobs. >> secretary, do you think that maybe more should have been done right at the beginning particularly for smaller to medium sized enterprises? do you admit there has been a learning curve here and more could have been done in a direct sense when the crisis first blew up right in the beginning of the administration? >> well, you know, the president did move quickly when he first took office. i mean, he was the first one to propose the recovery act funding to try to mitigate the financial institutions and try to correct those incorrections. >> i'm terribly sorry to be so rude as to interrupt you but specifically on the question of small or medium sized businesses and recognizing their importance perhaps through forgiving some of the payroll taxes, do you not think that would have had greater clout in hindsight at the beginning of the crisis? >> well, i'm telling you that now we are pushing that forward and i know that that's always
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been a constant, constant item for this administration as well as for us in the department of labor because we can't see job growth unless you see small businesses and medium sized businesses moving ahead and feeling confident and getting the credit that they need so all that had to happen before we could actually kind of reach this point. so i think there's a lot of restructuring going on in the economy, a lot of contraction. we still see additional jobs being added in the temporary sector, in the health care sector. slight uptick in manufacturing but we still need to go further. >> what there isn't in this country, and i'm new here. i come from europe where there is a very strong debate about what sort of jobs we need to have for the future. how do you compete with china? how do you compete with asia? and where do we educate the population in order to ensure that there's jobs growth in the future? of course, that is in a sense being masked by the cyclical problems we have at the moment. >> yes. >> could you go further in helping america work out where
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it has to be in terms of its industries and its job creation not just about environmental industries but perhaps something that's more pervasive? >> well, i think again, the manufacturing industry where we can begin to cut our independen independence, not independence but our dependency on foreign oil, fossil fuels, and trying to re-energize and retool our work force so we bring up the manufacturing base to look into new i.t. technologies, broadband, health care, for example, and in the green energies you have to think about all those people that lost their jobs in construction. a lot of those folks can now be brought back into retrofitting, weatherization, and helping to create a whole new energy system, a system that will help bring down costs overall for businesses so they can function and hopefully hire more people. the other thing is that we need to increase our exports out of our country to other countries so we become more competitive. we have to not just be a consumer country but one that exports our goods and services
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and i think that's the direction that this president is moving in and that's where we want to go. >> thank you very much. >> thank you. >> appreciate your time. quick check on the markets. dow up 52. nasdaq up 11. s&p up almost 6. all of it right around 0.5%. as simon pointed out you could have expected a bigger bump from the jobs report but we didn't get it. your cnbc edge now with our guests. we'll start with you. where's this market headed now? >> when is it headed down? >> no, where is it headed now? >> okay. i think it's headed a little bit higher in the short term. really moved right now by a lot of m & a activity, decent news on the economic front. i think we'll see 1150 on the
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s&p for sure and maybe even take a short-term run at 1200. >> so we can break out of the range to the up side? >> i believe so. >> you agree? >> are you asking me? >> yes. do you agree? >> well, i'm tommy williams. >> i'm sorry. it's tommy. >> thank you. i'll say that i do agree with that. i'll also say that down on planet earth where i live on main street, until the average small businessman who actually employs americans, until they feel more -- less skeptical, more confident, i don't think you'll see this economy go anywhere significantly until we feel more confident about our government, about the processes of legislation around us. i don't think we'll see anything really meaningful. we'll be about where we started at the beginning of the year which is where i think we are
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today. but it is exciting to get a jobs number like we did. not surprising but exciting. >> tommy, what part of planet earth do you occupy? it looks like maybe the southwest? >> actually i live in shreveport, louisiana. the great state of the new orleans saints i might add. >> i didn't know they had mountains in shreveport. >> we don't. i happen to be in phoenix arizona today. >> there you go. >> by the way, what a great, patriotic tie. >> well, thank you very much. >> the great patriot here. >> it's a tradition at the new york stock exchange on fridays. >> i can tell. it looks great. but it is great to have a jobs number this morning that's positive. within the next few months we should be seeing about 200,000 jobs a month added but that's going to come from small business, 90% of america or maybe 70% i think works for companies with 50 or fewer people so that's where america's rebound is going to come from and it looks pretty good. >> tommy, sure could have fooled
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me. sounds like an arizona accent to me. gentlemen, have a great weekend. >> thank you. next, charles schwab ringing in a new day. ending a five-year stint trading on the nasdaq. chief investment strategist liz saunders up next. she'll explain why. >> in general nothing is missing today. not the back drops. you're on the ball every crack. >> yes. i think. >> much more on the jobs front. down 36,000 but the rate stays at 9.7%. but where would we be without the census and government help? three economists, four opinions. that's just ahead. >> oh, no, no. don't confuse me with economists. i'm not feeling that well. >> it's friday. treat it as an expedition. don't forget the street poll. lawmakers move forward with a $15 billion jobs bill that includes tax breaks to companies
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hiring new employees and more federal highway funding. is this money well spent or is it -- what are you looking at me like that for? i'm just reading. >> are you ever going to -- this tease is five minutes long. >> or is it a waste of time? vote squawk on the street.cnbc.com. if you do one more thing in your life, vote. >> it's a good thing when you read that because when i saw lawmakers i thought it said lawn mowers.
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it's commodities corners time. i beg your pardon. a big move on the baltic dry index, one of erin's favorites. she goes down on the docks every day to check that one. it tracks the cost of shipping dry commodities including iron ore, grain, coal, and fertilizer. the index is up nearly 14% this week. but it does tend to get a little
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volatile and we've put together a chart that manages to completely not -- >> remove all volatility. that'll be the new graphics. >> anyway, about 90% of what the world produces and ships is transported by sea. the index has long been used as a leading indicator of economic activity. the folks at home know all this. and to gauge or speculate where commodity prices are heading. >> charles schwab celebrating its listing back here at the new york stock exchange today from the nasdaq that it switched to in 2005 so a switch-a-roo there. here onset fresh from ringing the opening bell, liz, a leading strategist at charles schwab. are you optimistic about the market? >> i am. i'm nor optimistic about the economy than i was a year ago. i think this economic recovery
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is given short shrift for somewhat obvious reasons. i think there are a lot of things to still be concerned not the least of which is debt and the fact that we cross that very important 90% of gdp threshold this year which has been shown to make it much more difficult for the economy to grow but i think we are entering into a fairly self-sustaining phase with the jobs numbers today at least relative to expectations, fairly healthy in light of the weather and i think the market on the back of much stronger earnings. valuation may have looked stretched relative to where it was last march but given the, not only now the very high percentage of companies being bottom lined but even higher percentage of companies being top lined i think the expectation bar is still lower than what we're likely to get per share. >> schwab's appeal has always been to the retail investor. as in the past proven to be a good or interesting insight into what the retail investors are doing. >> sure. >> what can you tell us about activity among schwab accounts? is it picking up or what?
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>> well, i think consistent with general sentiment net ricks that we all pay attention to there is certainly more optimism than what existed about a year ago. i think certainly looking at our clients there was pervasive pessimism and we noticed it in terms of what our clients were doing. you know, much more focus on cash. i think there's been a search for yield, big moves into fixed income, but more recently i think there's been increased interest on the equity side of the equation, too. >> completely out of time. in a very short answer can you tell me what you like best? big cap, small cap, foreign, emerging, whatever? >> i think u.s. equities actually relative to farm markets. i think you notice in this recent rally the emerging markets have been under performing the u.s. market and i think the next big push will be u.s. over the foreign markets and i think health care is actually our favored sector. >> okay. big cap health care sounds good. thank you, liz saunders. charles schwab. next, wall street's role in
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greece. >> yes, we'll -- >> i love the story. our wonderful bankers go over to greece and help them hide their debt. then come back and short the debt that they helped hide. >> more on that, we'll talk about the way the greece problem appears to have passed and whether it's a direct result of the threats that have been made by regulators on both sides. stay with us. dow up 65 points right now. 68 points as you can see in the wake of the jobs data 20 minutes into trade.
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hi, folks. welcome back. it's "squawk on the street" and i'm tracking stocks moving. i'm matt nesto. check out ciena stock up about 5% today coming back from a big loss over the past two days after some weak earnings. both cowan and ubs saying positive things about this stock and you can see it is up 6.5% right now. the dish network slapped down yesterday by about 5% and getting a little love here this morning from collins stewart. they raised it to buy. of course it was on the other side of the tivo story.
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bristol myers 2% higher today raised overweight at morgan stanley. they tng's headed to $28 a share. they like the pipeline. they like the risk reward. they like a lot of things about it and so does the market. simon? >> thank you very much for that, matt. if the bond market is supposed to be about to wield big sticks against government refinancing big dwret have the greeks got away with it? local austerity measures aside, there's absolutely no concrete guarantee to help greece from the germans from the french, brussels, or indeed the ecb and yet the turmoil this week subsided sufficiently for athens yesterday to sell $7 billion of debt. it might be that the state owned german banks came in as buyers. but more importantly, the speculators may have been seen off as a result of a powerful political back lash against some of the biggest and most powerful traders on wall street and in london who were accused of exacerbating the situation. andy bush is global currency and public policy strategist at bmo capital markets.
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also a cnbc contributor. good morning to you. various elements to this story. let's kick off if we may with this cds element and the way in which and indeed there is an article in today's ft about a dinner held by goldman's in athens at the end of january. the way in which these hedge funds were buying cds insurance on greek debt which they didn't own on the super cheap in advance of this crisis if only to sell it back to the banks and the outcry there's been over that. >> well, certainly that has been one of the biggest developments obviously with the development totally of the cds market, your ability to go in and look at people's debt and say, look. they're not doing a good job of managing their money. we're going to go and put pressure on them. it became very acute during the financial crisis with specific cds and corporations. this is a country so it's a much different story here. what i find interesting and why this is kind of calmed down this week, and i make it analogous to what happened with the gses here in the united states. there was an implicit guarantee
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before they were taken into conservativeship. the market forced the u.s. government to take them into conservetiveship and back that with an explicit guarantee and i think that is somewhat developing with the greek debt and the eu. i think that's why people are getting comforted by what's happening with greece. >> i totally disagree with you, andy. i think this is about the fact that they're promising tighter regulation in europe. it's the fact that the authorities here have written to people apparently who were colluding in the foreign exchange markets to short the euro if that is indeed wrong or a crime. >> is there a collusion in the foreign exchange market? there's not an underlying like security that the sec would look at like a stock where people would actually get hurt, their corporation would get hurt. we're talking about the currency market. i think the eu is off base when they're going after currency speculators or collusion. i think that just doesn't make a lot of sense. >> that may well be but the point is made as a result of the
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journal article friday that letters are written by the regulators asking people to keep their records of their shorts. >> right. the regulators can ask people to do that. i don't know of a specific law within the eu that says you cannot sell a currency or that you can't tell people that you're selling a currency. i mean, banks put out recommendations all the time that they're selling currencies. is that collusion? i think that's off base. and i think that takes away from really the more salient argument as far as greece goes and what's more important is this is a country that needs to get its act together fiscally and that's what they need to do and cds drives that. >> andy, we will talk to you after the break. stay with us on "squawk on the street." >> somebody get him an egg mcmuffin while he waits.
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live from the financial capital of the world in the heart of lower manhattan, welcome to the second hour of "squawk on the street." i'm mark haines. we are one-half hour into the trading day. stocks are higher. boeing, capital -- i beg your pardon. boeing and caterpillar two of the biggest gainers on the dow. shares climbing by more than 2% on word the i-pad will go on sale april 3rd and is available for preorder on march 12.
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ford, disney, and agilent hitting fresh 52-week highs but, you know, i should point out and i'm sure bob pisani is about to, the volume is not that great. he's down there with simon. >> hi, mark. yes, thank you very much for that. we were up 70 points just now. mark was saying the volume isn't great on this rally. >> the volume has been awful. it's been terrible, mark. for several weeks now. and technically that's a bit of a problem. but remember something. you can go broke on light volume and make a lot of money on light volume. so, yes, make a note of it to confirm a notable rally, usually do want stronger volume. it's been doing very well. the most important thing is i'm encouraged by what's going on over in europe. i'm encouraged by what's going on with the dollar. the dollar has been up in the last couple of days and the stock market is not falling apart. in fact, there's been a trend of the strengthening dollar and we were talking about this a couple months ago you and i. some day in the bright future the dollar is going to go up and
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the stock market is going to go up at the same time. that's been happening. year to date the s&p 500, we're not at new highs quite but we're 17 points, 18 points away from the new high in the s&p. the big cap already hit it. what's going on in london? the ftse is at a 52-week high today. with all the problems going on there i find that rather remarkable at this point given the issues that are out there. >> i suppose it's like any place. if the currency is falling the stocks can rise. >> but here the currency is going -- has been strengthening recently. eventually you go in a circle. you're in a hall of mirrors and you go crazy. the important thing here is commodities are going up while stocks are going up and the dollar is going up. >> speaking of the hall of mirrors let's get over to the nasdaq market site where scott wapner is watching the action. >> thanks so much. we're higher across the board. the nasdaq is good for about 0.75%. we find ourselves at the highest levels since we hit the mid january highs. you can really see where the bulk of the activity is coming from, from apple and google. the two standouts here. apple is up by about 3%.
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they say the i-pad is going to go on sale april 3rd in the united states. google was reiterated a buy over at citi. they say the recent weakness in that stock represents a buying opportunity. the price target they've reiterated there as well is $640. so, simon, you've got google ahead by 1.2%. cisco, amazon, also higher this morning. i will say these stocks are off their best levels of the morning. quite sharply off the open but then they have pulled back just a bit here at the nasdaq. >> okay. scott, thank you. let's get to sharon epperson at the nymex for the action there. >> simon, the oil is really running away with this rally. oil prices a few minutes ago above $82 a barrel on pretty decent volume here. as we look at prices closing in on the highs of 2010, the highs we saw back at the beginning of january, also copper prices, near a six-week high as well. a lot of folks who are hanging their hats on china's demand growth, deutsche bank out with a report today saying take another
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look at that particularly as china will likely have to get some exit strategies and employ those. we will see copper and crude fail to out perform compared to some of the other commodities particularly some of of the agricultural commodities like soybeans. take a look at that. rick santelli, over to you in chicago. >> thank you very much, sharon. if you look at the unemployment gauge just an alternative, that includes, you know, discouraged workers, part-time or underemployed workers it moved from 16.5 to 16.8. that gives you another glimpse, many of course believe that the snow impact here would have been worse and it wasn't. still not creating jobs. many pay more attention to the rate of change. but many still look for when we're going to get that positive number. we see that the markets respond, higher rates, higher dollar but well off its best levels and, of course, we are looking forward to supply next week, supply continues to be a dominant issue.
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next week the auctions include 3s, 10s, 30s, 74 billion. next month when we get the labor report it will be on good friday. it will probably be a shortened session and some exchanges will still be closed but that number looks to be coming out at its normal time anyway. back to you, mark. >> thank you, rick. 36,000 jobs lost in february. much fewer than expected. keeping the percentage of americans unemployed at 9.7%. where would the unemployment rate be without the billions in stimulus dollars? brian shactman is back at hq. he's got out his little calculator and he's got part of the story. brian? >> you know, mark, that is the key question. last february the u.s. economy lost 651,000 jobs in the year since nonfarm payrolls shed about 3 million more. today's numbers, minus 36. on paper a better situation quite simply. how much was plain old cyclical economics and how much was the now 800 plus billion dollar plan? well, we asked several
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economists their thoughts on that question. >> half a point on the unemployment rate may not sound like a lot but it's a million jobs. and the million people, there are still a lot of people in this country. so i think it did make a difference. i'm not sure it made as much of a difference as it should have given the amount of money that was spent. >> i'm more concerned that any positive impact from the stimulus may be offset by just the general uncertainty emanating from washington. the prospects of health care reform that would increase the cost of employees, possibility of higher taxes to fund health care reform that will add costs onto business. >> as for the debate on the weather, even economists, some are critical of fiscal stimulus saying you might want to hold off judging parts of it until at least the spring. >> well, the big hopes had been we'd see the creation of a lot of construction jobs as the infrastructure spending went out. in fact, that spending went out a lot more slowly than we thought and in the first part of this year of course it's been
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overwhelmed by the weather. it's hard to build hsbc when you g -- highways when you have a foot of snow on them. >> we're already building up anticipation for next month's number. >> thank you very much, brian shactman at headquarters. let's put my mike on. that'll help. forgive me. brian, thank you for that. let's get more on the jobs number today. mike england is principal director and chief economist for action economics and, john, chief economist with moody's capital market. mike, we heard in that report from brian this repeated concern that it is uncertainty on washington or from washington that is affecting the jobs market. stripping out what you and i may think about what is going on personally in washington, do you think that's having a huge economic impact? >> well, yes, i do. i think in fact in analyzing the impact of the stimulus package you could take a keynesian spin or post keynesian spin. the keynesian spin is to add up all the positives of the
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stimulus spending and assume that number is the impact. the post keynesian spin is to say people do react to news of the policy and adjust private behavior accordingly. that's where iz the negatives. people are focused on the budget deficit, focused on costs. many people are concerned about the health care bill. the private sector is pulling back so the very actions being taken to create jobs and create a better work environment to many people is spooking them and is pulling back the private behavior that is driving private investment and private decision making. >> as a chief economist, john, are you able to give us some sort of idea of the magnitude of what that effect might be? you know, even maybe on a scale of 1 to 10 or whatever? >> well, i would say, you know, the fiscal stimulus and monetary stimulus that we have had has been of critical importance to help stabilize the economy and help the growth of business sales resume. that would be spending, by both businesses and consumers. trying to put a number on it
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will quite frankly if the government had done nothing we would probably be staring at an unemployment rate today that would be several percentage points higher. and so i think the government and perhaps they were late to react, arguably, has done the right thing. it is true, however, that concerns regarding the ultimate costs of health care reform are perhaps discouraging hiring activity by smaller businesses, not so much larger businesses, but at the heart of the matter is that this economy still suffers from a level of sales that is well under what had been expected in the summer of 2008. >> mike, not much time left. i'm getting so sick of not as bad as expected. it's still getting bad but not as quickly. when do we actually grow jobs? when's that going to happen? >> well, we do think we'll switch over to the positive side of the ledger over the next
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couple months. in fact, one is going to be the census hooigs whiirings which w couple hundred thousand next month. a window of job gains probably accumulating 400,000 to 500,000 over the next three months. beyond that i think the economy will have sufficient trend growth to continue o to produce a pus jobs growth rate. i think we're at the cusp. it will be a slow but positive growth rate and will still disappoint economists and probably not generate much of a meaningful drop in the unemployment rate until the end of the year. >> okay. thank you very much for that. the house yesterday approving a $15 billion jobs bill. now, the legislation goes back to the senate for final approval. do you think it's money well spent or not? that is our street poll today. do you think the jobs bill is money well spent or a waste? "squawk on the street".cnbc.com. not an e-mail poll. a web poll.
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go and vote. next, why the next big cross-border megamerger may be coming from some unexpected places. find out how you can cash in when we trade the globe. >> making money in mid cams. the manager of a fund up more than 120% in a year reveals her next big bets. as we head to the break, here are some of the biggest gainers this morning on the american stock market.
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hi there. i want to show you the hottest industrial stock, energy and industrials leading. monster worldwide, yes an industrial. the temporary blip raise increase in the jobs report today really the only bright spot out there. monster's hot. corn ferry is hot. all trading 2% to 3% higher. lastly williams added to the top picks list at citigroup. that's good for we'll call it 2%. it's a friday. we're generous. 31 is the price target on williams. over to david faber now for the very latest. thanks, matt nesto. you mentioned citi. i want to mention it as well in a different context. some chatter starting right lately about when the u.s. treasury will try again to sell some of that enormous stake that we the u.s. taxpayer own in citigroup. the stock approaching $3.47 or
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so. well above the $3.15 if you recall that the company sold stock late last year in what was an enormous offering. the lockup that the u.s. government agreed to as part of that offering will expire in about a week, week and a half or so let's call it. that is raising speculation that the treasury will try to hit the market at least with some of its stake for which it paid about $3.25 cents a share. there is a look at the december offering just to refresh your memory. it was 3.15. raised $17 billion. there are 28 billion shares outstanding of citi. and so when you talk about 27% of it being owned by the u.s. government you can imagine you won't get an offering all at once of that stock because that's a lot. the market cap of citi is still right around what, 28 times 346. you can see 347. we're talking about a big number there approaching or right around $100 billion mark in
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value. so we'll see what the u.s. treasury chooses to do and how much if any it does choose to sell. certainly that will be part of the conversation when it comes to citi. another part of the conversation of course is take a look at one year ago. it was march 6th of last year right around this time that the stock was a dollar, $1 a share, i believe 1.02 traded as low as 99 cents. it broke the dollar barrier so it is up substantially since then as of course are all the stocks, bank america, warrants of which were recently sold by the u.s. government for about $1.5 billion. b of a actually a better perform inner this last year than citi but both up a lot. a lot, a lot. of course, there's talk of nationalization all over the place a year ago. you can see there that's recent. but let's take a look. there it is. one is up over 400%.
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the other up over 240%. things look a good deal better today. we'll see if the u.s. treasury thinks the coast is clear to try and get out at least of some. back to you. >> thank you very much. let's return to our discussion on greek debt and indeed the degree to which regulators on both sides of the market may have been able to beat the speculateors back on greece this time. andy bush is global currency and public policy strategist at bmo capital markets. also a cnbc contributor. we were talking earlier, mark. do you want to join this conversation? >> no. you go right ahead. >> that's not what you told me before. what we were basically talking about, andy, was the way in which on both sides of the atlantic the regulators have threatened to get involved with cds regulation to greater extent. >> right. >> questioning a lot of the shorting that's been going on. >> right. >> sending letters left, right, and center and ultimately without any major guarantee from anyone, greek managed to get through selling $7 billion of
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debt yesterday. my question is, is this potentially a testing ground for hout politicians may attempt to behave further down the line? >> yeah. i would say so. i mean, this is a great way of cheaply getting the market to buy in that you'll support a country without having to do anything. so it's a little bit of game of cat and mouse or maybe even chicken would be a better description of it, because at some point the market will test whether or not they're going to support this implicit guarantee of greek debt. so i think down the road it may be ten years. we knew about the problems with fannie and freddie for a long time, for 15 years, perhaps, before a crisis developed in which the u.s. government had to take them over. so i would say we'll probably need something that acute to really get the eu to step in to help greece. >> see, i -- i defer to you because you know so much more about it than i do. >> don't say that. that's not true. i might get more worked up about it. >> that was a marvelously nuanced question but, no.
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now i have a question. my good friend and colleague david faber cab wait a moment. what i would like to know is does the way this is being resolved ameliorate or in any way lens lessen the chance speculators will now go after the other so-called p.i.i.g.s.? >> clearly they've been going after them already. it's a question of whether that's a good thing or a bad thing. i mean, is cds the instrument of death for these countries? i would put forth that it's not. it's a way for the market to enforce discipline on the governments to actually correct the problems that they have. it's analogous to what happened to bill clinton during the 1990s when the u.s. bond market was selling off because we were concerned about the increase in the budget deficit. and there's a day coming when that's probably likely to happen here in the united states. whether it'll be aided by cds or not i don't know but certainly cds gives people an opportunity to take advantage of what they think is mismanagement by these countries. >> david? >> no doubt about that.
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and it can be abused. i guess my question follows on mark's though which is, you know, it seems to me that, all right. greece for now may -- we don't even know what the resolution is there. but, you know, we'll move on to spain. you can already hear it and see it. of course, portugal has adopted some austerity measures, similar to what greece is doing to try and avoid this but doesn't it feel to you as though this is going to be a story that we're going to be dealing with this year, next year, and perhaps the year after? >> i think it's going to be going on for quite sometime. absolutely. and, you know, it's going to come right over here to the united states and the uk, obviously, two countries that are building up massive amounts of debt and big budget deficits. so it's a story actually that hits home a little quicker than you think, david, because just yesterday i believe it was cnbc that reported that the aig reported to the regulatory authorities in the united states that they have $100 billion worth of i believe cds on european banks. so while u.s. investors may
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think that they're immune to this, they're not because there are some companies that have written cds that are, you know, unfortunately actually as u.s. taxpayers we own them. >> okay. thank you very much for that, andy. thank you very much for that, david, as well. i think you're all wrong and i think you'll find the politicians play a lot dirtier coming up with the markets than you're assuming actually. i think they're not going to just sit by if these threats in the bond market are true. i think there will be a lot more intervention. but what do i know? nothing. >> no. on the contrary i think you know more than i do. >> socialism will -- you've seen it in the uk. you saw the way they came through with the volcker rule. these things mushroom in political communities. >> all righty. i'll just move a little further away. the dow, now at session highs. next up, more than $200 million worth of global m & a deals in february alone. see how you can get in on that by picking the right stocks.
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we're trading the globe next. >> and this big cap fund is up 120% over the past year. the manager shares the secrets to her success and tells us why she is buying even now. first a look at how the dollar is faring today. there you go.
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welcome back to "squawk on the street." i'm julia boorstin with all the stocks making news in today's west coast wakeup. acti vision in a legal battle over call of duty modern war franchise. the studio filed a $36 million lawsuit against activision alleging wrongful termination and breach of contract. the company calls the lawsuit meritless and claims the pair did not honor their obligations to the company. disney's alice in wonder land opens today in the largest
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3-d release ever. it'll be playing in nearly 4,000 u.s. theaters. more than half in 3-d and is expected to bring in $70 million at the weekend box office. sunday night's oscars are expected to draw more viewers than the 36 million who tuned in last year. the academy and abc are putting more information online than ever with the facebook page and iphone app. advertisers like hyundai and j.c. penney are also making a big push online to tap into chat bert the winners and red carpet fashion. simon, over to you. >> good morning, julia. welcome to friday. and a fantastic weekend in prospect as well. investors have been cheering the return of m & a down here at the new york stock exchange. why not? it means confidence from the corner office, credit markets back to normal. arguably. and big profits for the banks behind the deals. but as u.s. markets have been built up by the buyouts maybe the emerging markets deserve the credit.
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year to date 38% of all m & a offers have come from an emerging market acquirer. compared to half that amount this time last year. are more and more brick buyouts on the way? let's go trading the globe with tim seymour of emerging money.com and indeed a fast money trader. tim, for a long time we've talked about a third wave of globalization and this is it. hey? >> it is. i mean, you've got a couple themes, simon. emerging market companies looking to buy brand validation, you're also getting emerging market companies that need to secure their resource future. china is going to continue to be buying up resources, india will do the same. i think obviously the flip side of that is also the m & a activity might not just be em acquirers but clearly developed countries are seeing their multinationals going into emerging markets to capture that growing middle class growth. this is a theme that i think you'll continue to see and, you know, the banks that are exposed to this and the sectors that will be hotly i think active are
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the places you want to focus. >> yeah. it comes back to that question of whether you think these developing nations, conglomerates will buy in the developed worlds, western europe, united states, canada, for some of those brand names as we saw within the automotive sector or whether they're cheefl going to be looking at their neighbors in the emerging markets as the main targets. >> i think it will be both. you've seen in brazil this year for example buying local assets, teaming up with local players in addition to royal dutch shell. remember this isn't always particularly comfortable for western economies. in other words, we remember when the run was made at unical and it went through the political process you probably remember in the uk, you know, so this is a little uncomfortable. russian steel production, russia has their producers have over 20% of u.s. steel production through acquisitions so i think, you know, the good and the bad
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of this is that get used to emerging market multinationals coming on to developed market soil but the good news is there will be plenty of deal flow from this that's good for bankers and great for the sectors if you're playing there. >> it may be uncomfortable but i suppose if you think about it from a theoretical sense it's those countries that have built up huge foreign exchange reserves like china actually recycle that in a productive way through the economy. i know we've got an issue with them buying up oil and gas and, you know, the short supply, but in theory that money should be put back to work within the real economy for growth and jobs for everybody. >> i think it's very positive. and i think, you know, it creates global competition and ultimately is raising the standards in a number of industries where i don't think we've seen it but again if you look at even a company like vodaphone they've been buying and acquiring cellular companies around the world to the point where they are really, they get more of their growth from emerging market countries than they do even from the uk. i think this is very positive.
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emerging market currencies in some cases have gotten strong enough where, you know, brazilian acquirers are at an advantage. we debate all the time about whether they're going to revalue the currency but china's krenlsy will soon be something that gives them an advantage when buying in the open market. >> have a good weekend. >> thanks, simon. >> get more of tim's international trades every tuesday on "squawk on the street" and of course every night on "fast money" at 5:00. just ahead on this program "squawk on the street" mid caps out performing large caps over the past month. find out what one top rated mid cap money manager is buying with her $1.9 billion under management. as we head to the break a check on oil, look at that, above, well above $80 on today's trade.
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7:33 on the west coast.
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10:33 here on wall street. good morning. if you've just joined us our main headlines stronger than expected february jobs figures have moved stocks higher across the board here at the new york stock exchange. the dow and the s&p at their highest levels since january 20. democratic senator chris dodd tells cnbc a bipartisan agreement on financial reform is not there yet but hopes to be there within days. shares of apple climbing over 3% this morning after announcing the new i-pad will be on sale april 3rd across the united states and already bob pisani is down here on the floor, one of those expecting to use it in his daily work. >> bob is very cool. >> very cool. >> bob is very with it. >> cool breeze. >> let's look at the markets right now. the dow is up about 0.8%. nasdaq more than 1%. s&p exactly 1% so the nasdaq is leading the way. on the big board, very positive.
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what is that, better than 4 to 1 positive. on the -- don't have the nasdaq numbers. i will point out, though, that volume, itself, total volume is really very weak. mid caps out performing large caps over the past month. the portfolio manager of the asten optimum mid cap fund, just named one of "usa today" top pickers, her fund up more than 120% in the last year, beating 98% of all mid cap core funds for the past ten years, thyra is with us this morning. good morning and thanks for being with us. >> good morning. >> all right. great track record in recent times. what do you like now? >> right now, we are buying an
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adaptor connector company. it looks attractively valued. we are adding to mcgraw hill. we started buying it in october. it has appreciated 12%. we would add to those positions on weakness. we would buy both warner on weakness, fti on weakness. they have very high technology equipment for deep sea drilling applications. >> it sounds like you are finding plenty of stocks that meet the criteria about which you buy. >> yes. another one is very exciting. it's accelerating products on the internet, an application and content over the internet which is becoming more and more important. and they look attractively priced here, so on a slight pullback we would add to that
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name akami. >> i know you say in your notes you take a fundamental bottom up approach to valuation and picking. >> yes. >> when typically would you expect mid caps to make the most gains on the stock market? wouldn't it be kind of later in the cycle when there's more inflation around -- because they don't typically have pricing power, do they? they tend to be price takers so they need the economy to really be chugging to increase margins or do you disagree with that? >> i disagree with it, because i think mid caps are misunderstood, under invested. sponsors pick large and then small cap and you find a lot of interesting names in the mid cap space that have great products, the ability to go market share and you have to pick them and know them well and we have stock, 50% of our holdings have 50% or more of their revenues from outside the united states so they are doing really well and they're doing better than
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large cap. >> okay. thank you very much. appreciate your time. the dow and s&p now trading at highs not seen since back in late january. next, are lawmakers playing politics with your money? why would we ask that question? isn't that kind of a foregone conclusion? find out what's going on behind closed doors on capitol hill when it comes to changing the rules on wall street. >> itt educational services up 15% over the past month. should you be a buyer heading into the weekend? the answer in today's friday trade.
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i was just in town for a few days, and i was wondering if i could say hi to the doctor. is he in? he's in copenhagen. oh, well, that's nice. but you can still see him! you just said he was in... copenhagen. come on! that's pretty far. doc, look who's in town. ellen! copenhagen? cool, right? vacation. but still seeing patients. oh. [ whispering ] workaholic. i heard that. she said it. i... [ female announcer ] the new office. see it. live it. share it. on the human network. cisco.
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15% or more on car st: coulinsurance?e yougeico host: did the waltons take way too long to say goodnight? mom: g'night john boy. g'night mary ellen. mary ellen: g'night mama. g'night erin. elizabeth: g'night john boy. jim bob: g'night grandpa. elizabeth: g'night ben. jim bob:'night. elizabeth: g'night jim bob. jim bob: g'night everybody, grandpa: g'night everybody. jim bob: g'night daddy. vo: geico. 15 minutes could save you 15% or more. welcome back to street. matt nesto.
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check out dean foods one of the best performers in the s&p up over 4% on big volume, done about 150% of the ten-day average. the stock slumped to about a one-year low after its recent earnings miss, 15 to 1 call to put ratio. deduece from that what you will. american express leading the dow today seeing some revisitation of the consumer finance stocks even though capital one got downgraded. it, too, is strong. you can see amex up 2.3% on the session. cold water creek another big day for the retailer. up 9% today. up 25% yesterday. the stock raised to overweight at barclays all the way to $10 per share. lastly wendy's arby's another bad day. the stock was down big yesterday. down big again today. the 2% giveback. goldman sachs cuts it to neutral. simon? >> thanks, matt. the united kingdom's one-time tax on bank bonuses could bring in more than 2.5 billion pounds which would be $3 billion, $4
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billion, equivalent to -- sorry. it says here $3.7 billion. according to "the financial times." here in the u.s. democratic senators webb and boxer are pushing for a vote on a similar measure. it would levy a one-time tax on bonuses paid to executives at top firms however you define those. the chair of the senate finance committee says the amendment is being considered for a vote. david? >> thank you, simon. washington is still trying to figure out a way to overhaul the way wall street works. our chief washington correspondent john harwood has what's going on behind closed doors. i was listening to senator dodd this morning. of course john on "squawk box" did seem to indicate they're going to try and get a bill out i guess it sounds like next week. >> exactly. one of the questions we've all been focused on in recent months is to what degree the obama agenda has lost altitude as the public has been so upset with washington expressing that massachusetts senate race among
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other things but senator dodd this morning on cnbc expressed a great deal of confidence that in the end the consumer protection piece of financial regulation as well as the entire bill that they're going to get it done. >> for the very first time in the history of our country have a place we're actually watching out for people who buy credit cards and mortgages and so forth will have someone really watching out for them. that's a strong bill and i'm still pretty confident we can get there. >> look at the contours of public opinion to figure out why he is so confident. it is true if you see the attitude of the public toward government intervention in the economy, support has gone way down since early in the administration when barack obama was implementing the stimulus plan and the bailouts were front and center. bailouts have become unpopular so that's become unpopular but it's a different story when you look at banks and major financial institutions. here are some numbers that show what's happened since march, 2009. you saw then that 60% of the
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american people said they wanted more regulation of banks and financial institutions. that has barely changed at all, 59%. and the distaste for wall street goes across party lines. when you ask people do they have a favorable or unfavorable view of banks and major financial institutions, better than 60% across the board. democrats, republicans, independents. that is why the democratic party and the obama administration thinks they've got the wind at their backs, that they can force this through whether or not republicans come to the table in large numbers they're not going to be able to resist it in the end. we'll see that playing out not just in the banking committee as you mentioned, david, but on the floor of the senate thereafter and the negotiations with the house. >> very interesting. you know, now, dodd kept talking about bipartisanship. he kept mentioning bob corker's name. judd gregg's name. you know, they'll come out of committee without a consumer protection separate agency it seems like aren't they?
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>> that's right. what dodd is doing is negotiating with republicans seeing what they're willing to live with and shopping that with democrats but he has gotten a lot of pushback from the democrats to this idea of putting consumer protection within the federal reserve and that reflects the fact that the left of the democratic party thinks this is an issue they can fight and win on. one way this happens as compromise with republicans that brings a large number of republicans -- shelby, bob corker, maybe half the republican caucus. the other way is a bill where you just get a couple that you need to get past that filibuster and progressive thinks they can win the latter battle. they don't want to give up too much to try to get a lot of republicans. >> then you have to go to congress with the house bill. >> but the house bill is stronger than anything they're talking about in the senate. >> all right. john harwood, thanks very much. simon, back to you. >> thanks. we're up 85 points on the big board in the wake of the job figures. straight ahead stocks to buy and sell and hold as we head into the weekend. the friday trade on "squawk on the street." >> but first, oh, trish.
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>> oh, very nice. glad to be back to that sing song. okay. we have a lot coming up on "the call" at the top of the hour. we're going to talk jobs, plus we'll talk about the reaction right now in the market. so far so good on that front. plus we've got the ceo of hotel conglomerates carlson. we'll get his take on business travel. is he seeing any kind of improvement whatsoever? then we go live to berlin where greek and german leaders are meeting about a possible bailout so we'll have the very late oent that for you and here's a big one for larry kudlow and mark haines. our parent company general electric is extending its smoking ban for employees. this means you can't, guys, smoke outside the building. we're going to talk about that and whether or not it is the right decision. we have a lot coming up for you only on "the call" at the top of the hour but first "squawk on the street" is back right after this break. all right.
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here we are, the s&p up about 1% for the week. what stocks should you be buying and selling heading into the weekend? it's time for the friday trade. bob phillips is managing partner at spectrum. mark howard is at rbc capital
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markets. gentlemen, good morning. starting with you, what should we be doing? >> you know, i think we've got a number of good-looking names here. the first one is abbott labs and we just finished our health care conference coming out of that. hoo this is a company just completed their acquisition and 2 plus billion. you have humora and a number of drugs that will keep them going. this is a solid name as we move in the back half on defensive. >> abbott labs? >> and freeport-mcmoran. another name we upgraded to an outperform from our team. the net of it is you have copper. copper is still a great place to be. continued economic momentum behind that and everyone is buying hard assets and freeport is a great way to play it. we're talking cash flow out the wazoo. >> both picked education stocks. >> our clients, individual client, the portfolio in the $8 million range and we look at
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stocks to cover long-term inflation protection and the whole productivity theme in the rebound is what we play off of. i think education is right in the middle of that. we have high unemployment which means people have to go back for retraining, so i think itt educational is is a great stock to own. >> what does itt do? >> itt is is an education company, basically. it's for-profit, bachelors degrees, masters degrees, training people in the industries that the economy needses today. >> productive. >> marc, yours is educational management core. >> ei go is the ticker we upgraded this week. it has one large school that drives the story. it is a for-profit school, but filled with young kids which is different than the typical for-profit school which are people coming back, second career, doing it part-time or coming back and doing it while still raising their families. this is young kids and it has momentum. >> bob, you also like an old
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standby, cisco? >> we love cisco. no debt, a lot of cash in the balance sheet. last november it came out with 61 new technologies and we think they're just on the forefront of great earnings momentum. the last earnings report last month was outstanding and we think it's again, a great, conservative way to buy growth and get some return out of this market as we see the market continuing to do well towards the end of this year. >> it's an extraordinarily well-run company. you can have a lot of confidence in the management team. they've been doing so well for so long. >> corporate america's balance sheets are extremely strong, so the whole productivity play that we've seen throughout this whole rebound continues and we think the technology companies continue to benefit from that. >> all right, gentlemen. thank you very much. >> thank you. thank you. >> bob and marc. "six in 60" is coming up after the commercial break. >> and a chance to vote on the "squawk on the street" poll, do you think the jobs bill is money well spent or a waste of
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taxpayer money? logon to squawkonthestreet.cnbc.com. we'll be back in a minute.
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the dow hitting a new session high. we're up 89 points, 10,533 which is a january 20 high, mark, because january 19th was when we had the high of the year, 10,325. we're still a way from that. >> about 200 points more. >> okay. in today's street poll we asked do you think the jobs bill is money well spent or a waste of taxpayer dollars? and 26%, one-quarter, said money well spent. three-quarters said it's a waste. okay. time for "six in 60," six stocks, 60 seconds. i guess i start today. here we go. dish network upgraded to buy
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from hold at colin stewart. yamana gold downgraded at rbis capital. intermune jumping high are. fda comments on one of its key drugs, better than investors had expected. >> allergan upgraded to buy from hold at lazard. google reiterated its buy recommendation on the stock and the firm seeing recent weakness as a buying opportunity and del mon monte. the firm citing better than expected quarterly results, mark. >> time to get -- oh, no, not again! breaking news! matt nesto! >> all right, mark, thanks very much. you just learned that the sec has levied a fine of more than $10 million on the former ceo of kmart. this dates back to 2005 on charges that have been fought out in court since he was
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charged with misleading investors. the sears/kmart combination was formed in 2004 so charles conaway, the ceo facing a $10 million fine and civil penalties from the sec in relations to charges of misleading investors dating back to 2005. back to you. >> thank you, matt nesto. so fess up, are you really upset about this whole greek thing? >> no. what do you mean, am i upset about it? >> your questioning was passionate. >> i just think we might be missing a trick here where actually the politicians -- you know, you get this impression that europe is a rag bag of bob-tailed people who are not terribly competent. >> i think that's a fair assessment -- >> i think there are smoke and mirrors to stop the speculation on the greek debt with no guarantees. nobody's guaranteed anything and they've seen the speculators off. that is a very powerful effect.
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>> yeah. pretty clever of them. >> yeah. >> yeah. i think so. >> all right. i think we're done. >> yes. >> thanks for watching "squawk on the street." i'm mark haynes. i'll be back tuesday. erin is back on monday. >> i'm going to be you on monday and i'll be erin this afternoon at 2:00. i'm simon hobbs "the call" is is next. good morning, everyone. welcome to "the call." i am trish regan. we are 90 minutes into today's trading right here on the new york stock exchange. we are seeing a move higher thanks to that job report. you guys are laughing, i guess. it's good news, right? to see more people getting back to work. the big question, though is whether or not it will launch a bull rally. we're going to debate it coming up. >> we're already debating. >> we're having a debate up here already. i'm larry kudlow. good morning, trish. >> good morning. >> we will talk live with the ceo of hotel conglomerate karlsson and get his take on the economy and business travel and jobs and snowstorms and everything else under the